Retail loss prevention is among the most demanding of all the security issues faced by retail operations. Not only must retail sales employees learn and adopt loss prevention practices, but they must adapt to a frenetic work pace, difficult client customers, even more demanding client employees, and an array of potential threats internally and externally. Additional challenges include threats to sensitive information, such as proprietary and customer data, as well as the avoidance of startling and unwelcome newsworthy incidents that could impact a client's brand and image.
Unfortunately, employee theft is a reality of retail operations. The statistics speak for themselves: a standard small business loses around 5% of its annual revenue to employee fraud. Additionally, the Department of Justice has shared findings that nearly one-third of all employees commit some degree of employee theft.
Every retail operation worries about shoplifting. Next to employee theft, shoplifting is one of the more destructive crimes in the American retail industry. Often viewed as a victimless crime due to the proliferation of retail insurance, this criminal practice costs retailers over $45 billion per year and accounts for more than 40% of total retail loss. Those are some significant statistics that directly affect you as a retail owner or manager, so it’s important for you to understand the nuances of this criminal enterprise.
Let’s examine some of the facts about shoplifting that you may not know and dispel some of the myths that are commonly taken as fact about shoplifting.
Successful loss prevention neither starts nor ends solely in one department. You need to create an environment where your IT and security departments can work together seamlessly to reduce patron theft, employee theft and other losses that negatively impact your business.
The end of summer is approaching and kids are heading back to school. Parents and kids will be flooding retailers looking to pick up school supplies. In fact, the National Retail Federation anticipates that the average family will spend $630 per child on back-to-school supplies this year alone, with total spending totaling about $68 billion in 2015—that’s a lot of business to be made from students and parents alike. Let’s look at some of the current trends in back-to-school spending so you can think about adjusting your day-to-day operations in order to best prepare for this influx of family shopping.
Retail businesses tend to have higher turnover rates in comparison to other industries. Anticipating and managing employee turnover is critical for the success of your operation—losing employees regularly can become a big burden on your bottom line.
Retail stores own enormous amounts of data, and that data needs to be stored securely. However, before you settle on a data storage system, you’ll need to ask yourself several questions. We’ll walk you through some of the most important questions you should be asking, so that you can be confident that you’re choosing the best data storage system for your company.
Tracking eCommerce sales is relatively easy with all of the built-in analytics that retailers have access to. Tracking these data points has always been more difficult for brick and mortar stores… until now, that is. With heat mapping, you can optimize your retail store to maximize sales.
Supply shrinkage (also known as inventory shrinkage) is something that many retailers battle on a regular basis. In accounting terms, inventory shrinkage refers to the loss of inventory from the point of purchase (inventory) to the point of sale. When shrinkage is high, profits are obviously lower.